US$ 5 million project signed to increase access to renewable energy in rural areas

The Government of Nepal, Alternative Energy Promotion Centre (AEPC) and United Nations Development Programme (UNDP) today signed a USD 5 million to expand access to renewable in rural areas under the Government’s National Rural Renewable Energy Programme Framework.

“The project’s expected results include support for formulation of innovative financial mechanisms to attract private investment in the renewable energy systems and productive energy uses. The project will support NRREP to develop 10 MW from mini and micro hydropower plants, 2.5 MW of solar PV systems and establishment of mini grids connecting Micro-Hydro Plants (MHPs) of 300 killowatts (kW) capacity to pool energy. The project will also support to build up capacity of local fabricators, installers & system integrators,” said a press release issued by UNDP.

In presence of Secretary of Ministry of Science, Technology and Environment (MOSTE), officiating Executive Director of AEPC Mr. Ram Prasad Dhital and UNDP Deputy Country Director Ms. Sophie Kemkhadze signed the document on behalf of the Government of Nepal and UNDP/GEF respectively.

Out of the USD 5M, 3 M will be funded by the Global Environment Facility (GEF) as a part of its Climate Mitigation Portfolio and 2 M by UNDP from its core fund.

The project titled Renewable Energy for Rural Livelihood Programme (UNDP GEF – RERL) will be an integral part of the AEPC implemented NRREP.

“The Government plans to provide clean cooking solution and electricity for basic lighting to every household by 2017, said Mr. Krishna Chandra Paudel, Secretary of MOSTE speaking at the signing event, “I am confident that this project will contribute towards achieving our goals.”

"We believe that it is crucial to continue the assistance from the UN and development partners so that the considerable progress the Alternative Energy Promotion Centre has achieved until now are adequately supported, sustained and further consolidated in subsequent years," said Ms. Sophie Kemkhadze, UNDP Deputy Country Director. “Ultimately helping achieve the goals of providing universal access to clean energy under UN’s Sustainable Energy For all (SE4ALL) initiative by 2030.